REPORT: Governor signs $2.8 BIL bailout for healthcare program overrun by illegal aliens

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From Fox News: Liberal Gov. Gavin Newsom signed a $2.8 billion bailout Monday to close the state’s bloated deficit in California’s Medicaid program, which surpassed projections due to the program’s expansion last year to include illegal immigrants.

The move, confirmed by Newsom’s office to Fox News Digital Monday afternoon, comes after the Democratic governor asked lawmakers last month for a $3.4 billion loan from the state’s general fund to cover some $6.2 billion in outstanding costs for Medi-Cal, one of the state’s primary healthcare programs that takes both federal and state taxpayer dollars. The additional funds will help keep the program running through June for some 15 million Californians, including noncitizens.

But Republicans have been critical of the loan, arguing the current Medicaid program isn’t sustainable with illegal immigrants included in the coverage.

According to state data, roughly 1.6 million illegal immigrants are currently enrolled in Medi-Cal, part of the program’s total 15 million enrollees. The state had initially projected the expansion would cost just under $6 billion for fiscal year 2024–2025. But just one year in, the costs have surged far past that estimate.

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California Republican state Senate Minority Leader Brian Jones blasted Newsom in a post on X, writing, “Just now, Senate Democrats rubber-stamped another $3 BILLION for Newsom’s free healthcare for illegal immigrants—on top of the $9.5 billion already spent. Meanwhile, healthcare access is plummeting. Wait times are growing. Democrats have made their choice: legal residents come second. We must stop new enrollments of illegal immigrants and rein in this unsustainable program before it collapses entirely.”

“Democrats claim the extra $3 billion isn’t just for illegal immigrants, it’s for the entire Medi-Cal program. But ask yourself this: If we hadn’t spent nearly $10 billion on free healthcare for illegal immigrants, would Medi-Cal be in crisis at all?” Jones added.

California State Rep. Carl DeMaio wrote, “AUDIT NEWSOM! I’ve officially requested an investigation into Gavin Newsom’s Medi-Cal scandal. He’s bankrupted the program by giving $10B in free healthcare to illegal immigrants—and there’s strong evidence he illegally tried to get federal Medicaid reimbursements.”

Rep. Kevin Kiley (R-Calif.) wrote, “Gavin Newsom has driven Medicaid to insolvency by giving full coverage to all illegal immigrants. Meanwhile, our legal residents can’t get a doctor’s appointment because the system is so strained. We are the only state in the country with this insane policy.”

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